The stock market has enjoyed a smart rally over the past 2 weeks and as such has gotten ahead of itself, or what technicians say is now “extended” which means it is ripe for a sharp pullback – a profit taking phase.
Going into today’s all-important Fed rate decision, our Current Market Outlook is being downgraded to “Uptrend under Pressure” with a yellow light at 12pm (SPX at 4,382.68). Our “Core Four” (see top of page) has 3 yellow and 1 green light.
Most people understand the phrase, “Don’t walk in front of a train.” Well, today’s Fed meeting will likely be just that, a speeding train very near. Wise investors know that it is better to not chase the market and to allow for natural and normal pullbacks to happen (especially around potentially market moving news) before committing new capital.
To that point, we offer up last weeks verse again for today’s post.
“He who walks with wise men will be wise,
But the companion of fools will suffer harm.” Proverbs 13:20 NASB 1995
Game plan: Gauge the market’s reaction to the Fed announcement before making big decisions: often much can be discerned by what the market does by the close of the day and the action of the day after a Fed move. The major stock indexes need to hold their 21-day mav’s on any upcoming sharp pullbacks.
Note: You can learn more about The Triumphant Core Four risk management system by clicking here.
Have a Triumphant day! ®
The information in this article is based on data obtained from recognized services and sources and is believed to be reliable. Any opinions, projections or recommendations in this report are subject to change without notice and are not intended as individual investment advice. Not to be used as legal or tax advice. ©2023 Triumphant Portfolio Management, LLC.
Where Are Woodward and Bernstein When We Need Them? This article was written by Newt